Acca financial Accounting (FA) Study Text ac ca (FA)

Which accounting body issues IFRS Standards?

 

A 

The Auditing Practices Board 

B 

The Stock Exchange 

C 

The International Accounting Standards Board 

D The 

government 

82 

Which of the following statements concerning the accounting 

treatment of research and development expenditure are true, 

according to IAS 38 Intangible Assets?

 

1 

If certain criteria are met, research expenditure may be recognised 

as an asset. 

2 

Research expenditure, other than capital expenditure on research 

facilities, should be recognised as an expense as incurred. 

3 

In deciding whether development expenditure qualifies to be 

recognised as an asset, it is necessary to consider whether there will 

be adequate finance available to complete the project. 

4 

Development expenditure recognised as an asset must be amortised 

over a period not exceeding five years. 

5 

The financial statements should disclose the total amount of research 

and development expenditure recognised as an expense during the 

period. 

A 

1, 4 and 5 

B 

2, 4 and 5 

C 

2, 3 and 4 

D 

2, 3 and 5 

 

 

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